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Should I pay more for a .co.uk domain?

So as I'm based in the UK I'm going to look at getting a .co.uk domain. I signed up for ipage.com for 3 years of hosting for around £50.

I have the option of some other domains like .biz and they are around £10 cheaper but with ipage I can get the domain name with .co.uk at the end for £25.98 per year. They are giving me a year free so it will be half that.

I've already signed up for ipage so would I have to buy the domain from them or I could I register it with someone else? Other companies are much cheaper, less than £5 a year. Could I use someone else?